November 28, 2023


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Malaysia can take WTO lawful action against EU around palm biofuel curbs

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FILE Photo: A employee unloads palm oil fruit bunches at a manufacturing facility in Tanjung Karang, Malaysia August 14, 2020. REUTERS/Lim Huey Teng

KUALA LUMPUR (Reuters) – Malaysia is using lawful action at the worldwide trade watchdog towards the European Union and member states France and Lithuania for proscribing palm oil-centered biofuels, the authorities reported.

The world’s second largest palm oil producer, which has referred to as a EU renewable-energy directive “discriminatory motion,” is trying to get consultations beneath the Environment Trade Organization’s Dispute Settlement Mechanism, the Plantation Industries and Commodities Ministry reported in a assertion on Friday.

Minister Mohd Khairuddin Aman Razali claimed the EU proceeded with employing the directive with no considering Malaysia’s commitment and sights, even immediately after Malaysia gave suggestions and despatched financial and technical missions to Europe.

The EU directive “will necessarily mean the use of palm oil as biofuel in the EU can’t be taken into account in the calculation of renewable electrical power targets and in turn generate undue trade restrictions to the country’s palm oil industry,” he said in the assertion.

The ministry filed the WTO request with cooperation from the Legal professional General’s Chambers and the International Trade and Industry Ministry, taking action it had warned of in July against EU Renewable Energy Directive II.

Malaysia will act as a 3rd celebration in a individual WTO case lodged by neighbouring Indonesia, the world’s most significant palm oil producer, as a sign of solidarity and assist, the ministry assertion mentioned.

Reporting by Liz Lee Modifying by William Mallard | Newsphere by AF themes.